08-10-2022, 04:46 PM
(08-10-2022, 04:05 PM)PDub80 Wrote: I'm not saying businesses don't do it all the time... they do... but typically those moves are done with corporate money and with protection. When individuals do it? Not good.
Now, borrowing personal money or against already owned assets for a small business owner or corporation (assets or stock) to purchase more hard ASSETS? Smart and done every day.
First of all I agree that they should not use personal wealth. But most corporations run on debt and the Bengals have none.
The team is worth $2 billion. If they borrowed money for funds to fund an escrow account it would have zero risk and would generate income.
I am not an accountant or a tax expert, but it seems to me that if teams are forced to put the guaranteed money in escrow the team would immediately get to claim the escrow amount as an expense (salary) and get the tax credit. An accelerated tax deduction would amount to some real savings when we are talking about $50-$100 million.
